Identifying undisclosed drivers can stem auto premium leakage

The average time for a new driver under the age of 20 to be added to a policy was 13.6 months. As a result, Verisk estimated average lost premium of more than $1,000 per policy.*

Drivers not included on insurance policies, particularly youthful operators, affect every insurance company. Economic conditions and changing family dynamics have made the problem even more pronounced. An insurer challenged by premium leakage suspected undisclosed youthful drivers as a primary cause. The company also recognized it didn’t have the internal resources or infrastructure to effectively pursue these missing drivers. Verisk implemented a program of targeted letter campaigns and telephone calls to validate operators and coverage. We delivered the following results each month: